Payments platform Stripe is reportedly moving its operations to Dublin due to Brexit. Most European customers will be processed locally (beginning on November 19, 2020).
Stripe’s management confirmed that they’re moving payment processing for most of their European clients to the firm’s Irish-regulated business entity because of issues related to Brexit.
The online payments firm stated that processing for all clients based outside of the UK and Switzerland will be handled by Dublin-headquartered Stripe Technology Europe Ltd. These transactions will be processed by Stripe Payments UK Ltd (starting next month).
Stripe’s management said that they’re “making this change to ensure Brexit has no effect on your use of Stripe’s services.” They clarified that the only difference customers might notice is that when they get payouts from Stripe, the statement descriptor on their bank account statement may “refer to STEL.”
Established by Patrick and John Collison in 2010, Stripe confirmed its plans to help create many new job opportunities in Dublin (in 2019). The company acquired an e-money license from the reserve bank in 2019 that enables the firm to continue to process European payments regardless of Brexit.
San Francisco-based Stripe joins several other firms that have acquired an electronic money institution license from the Irish regulator. A few other businesses that hold a similar license or permit include Coinbase, Facebook, Modulr, Payoneer, Prepaid Financial Services, and Soldo.
Britain will no longer have “passporting rights” as of December 31, 2020. The UK regulator will no longer be responsible for overseeing accounts of EU citizens (by the end of this year).
Stripe had been valued at approximately $36 billion after the company acquired an additional $600 million in funding from several investors earlier this year. Stripe has over 2,800 workers on its payroll (globally), which includes around 300 based in Ireland.
As reported earlier this month, Stripe acquired Nigerian Fintech Paystack (which will continue to operate independently).
Last month, Stripe announced a global commerce partnership with Salesforce to power Commerce Cloud Payments and to offer advanced commerce experiences for enterprise clients.